e-Residency FAQ — Estonian Company Questions Answered
Common questions about e-Residency, Estonian company formation, accounting, taxes, and VAT answered by Tax Owl experts in Tallinn.
- Do I need a local director for an Estonian OÜ company?
- No, e-Residents can be the sole director of an Estonian OÜ without a local director. However, you will need a local contact person service if you don't have an office in Estonia.
- How does Estonia's 0% corporate tax work?
- Estonia has a unique tax system where corporate profits are taxed only when distributed as dividends (20% on gross distribution, effectively 22/78 = 28.2% on net). Reinvested profits remain untaxed at 0%, making Estonia ideal for growing businesses.
- What is the VAT threshold in Estonia?
- The VAT registration threshold in Estonia is €40,000 in taxable turnover per calendar year. For e-commerce and cross-border B2C sales within the EU, different thresholds apply under the OSS and IOSS schemes.
- What is the annual report deadline for Estonian companies?
- Estonian companies must file their annual report within 6 months after the fiscal year ends. For companies with a calendar fiscal year (January–December), the deadline is June 30th.
- Do I need to visit Estonia to open a company?
- No, e-Residents can register an Estonian company 100% online using their e-Residency digital ID card. You never need to visit Estonia. Tax Owl can handle the entire process remotely.
- How much does Estonian company accounting cost?
- Tax Owl charges €49/hour for bookkeeping and accounting services. Monthly packages start from €149/month (Starter) and €299/month (Professional) depending on transaction volume and complexity.